Tension between
David Gallop
and the newly independent Australian Rugby League Commission over the NRL television broadcast rights negotiations contributed to his surprise resignation as the football code’s chief executive.

However, TV industry sources said Mr Gallop’s departure on Tuesday after 10 years as the game’s CEO would not adversely affect the process given that the ARLC appointed boutique investment bank Greenhill Caliburn to assist two weeks ago.

Sources said Mr Gallop’s close friendship with Ten Network chairman Lachlan Murdoch had also complicated his role leading the rights talks. Mr Gallop built up a relationship with Mr Murdoch, who sits on the
News Corp
board, while News Limited owned half of the NRL until last year. Mr Gallop attended a 40th birthday celebration for Mr Murdoch’s wife, Sarah, in Sydney’s Walsh Bay last week. Seven and Nine were uneasy with Mr Gallop’s relationship with Mr Murdoch given he is chairman of the rival Ten Network.

Mr Gallop in effect conceded he had struggled to adjust as NRL boss under the new independent commission structure.

“This new structure is what the game needed but it was perfectly understandable it was going to be difficult," he said. He added he had a “system" of doing things after a decade in the job.

Mr Gallop denied his role in the TV rights talks had been encroached upon by Greenhill Caliburn’s appointment, including former Australian Competition and Consumer Commission chairman
Graeme Samuel
, who works at the bank.

“No, I don’t think so," he said. “The game is in a very good position to get a good deal for the media rights.’’

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Rugby League hopes to raise more than $1 billion for the media rights under a five-year deal from 2013.

The commission had been seeking to hire an external adviser before the rights discussions officially kicked off early last month. It is keen to maximise media rights revenues following criticism that News, which owns half of Fox Sports Australia, had suppressed media rights revenues for the code in the past.

Prior to hiring Greenhill Caliburn, the ARLC held talks with World Sports Group (WSG) about an advisory role but pulled out after a complaint from a TV network. WSG is headed in Australia by David White, Ten’s former general manager of sport. Ten has said the network did not object to WSG’s involvement in the talks.

Sources said Mr Gallop had seemed “preoccupied" during the TV rights talks, that he had not managed the process adequately, and that there had been tension between him and the commission.

Mr Gallop had headed the TV broadcast rights negotiations with NRL strategy director
Shane Mattiske
, who takes over from Mr Gallop as interim CEO, and in consultation with a sub-committee of four ARLC commissioners, including Mr Grant. Nine and Fox Sports have first and last rights for the new TV deal as current rights holders.